Buying a home is a life accomplishment that is nearly on everyone’s bucket list.
Whether you prefer a modern home with large windows and daring roof lines or a suburban home with a white picket fence, most of us hope to find a home that will keep us and our loved ones happy for the long term.
However, buying a house is never easy. There are a lot of things that you have to prepare for. The process can be quite confusing, especially for first-time buyers who have never done it before.
One area that is often misunderstood is closing costs. Many buyers don’t know what to expect or how much they will have to pay. You need to understand what closing costs are when buying a home in Mayfield Heights.
What are closing costs?
Closing costs are miscellaneous expenses that are paid at the closing of a real estate transaction. Closing costs are given when the title of the property is transferred from the seller to the buyer. It can be incurred by either the seller or the buyer.
The total amount of closing costs depends on the location and the value of the property being transferred. The average closing costs percentage is usually about 2-5% of the purchase price.
Closing costs can vary from lender to lender and from market to market. However, the following closing costs are fairly typical for most home sales in Mayfield Heights, Ohio:
Loan origination or lender fees
The loan origination fee is simply a cost meant to pay for the research your lender has done on you as a borrower. It covers the lender’s cost of processing the loan, including origination, underwriting, document preparation, processing, funding, and administration. It is usually about 1 percent of the total home loan, but it is one of the few that can be negotiated.
This is the payment for the appraiser who assesses the value of the property you are looking to buy. Every lender requires a property appraisal report to determine how large of a mortgage to grant you.
Settlement/ Closing Fee
Legal representation at the time of closing is not required in the state of Ohio. The title company handles all the legal aspects of the settlement.
Title insurance is an insurance policy that protects the lender against any problems found in the public records or the possibility of title fraud. The buyer is required to pay for the cost of title insurance on the lender in the amount of the loan.
A survey must be conducted to find out important details about a house and the land it sits on. Property surveys are done to avoid any property line issues that might arise. The cost of a survey depends on a series of factors such as property size, terrain, and location.
You should have the home checked out by a professional home inspector to avoid a costly mistake of purchasing a property in need of major repairs. Typically, the buyer pays for the home inspection as part of the total closing costs.
Are you in the market for a home for sale in Mayfield Heights? Let me assist you!
I am Christine Pappas, your REALTOR® from Ohio. You can count on me to make your home buying experience easier! Call me at 216-956-7635 now!
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